II 

118TH CONGRESS 

2D SESSION S. 5244 

To prohibit the purchase of certain securities from covered entities, and 

for other purposes. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 25, 2024 

Mr. RICKETTS introduced the following bill; which was read twice and referred 

to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To prohibit the purchase of certain securities from covered 

entities, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘PRC Military and 

5 Human Rights Capital Markets Sanctions Act of 2024’’. 

6 SEC. 2. PROHIBITION ON PURCHASE OF CERTAIN SECURI7 TIES FROM COVERED ENTITIES. 

8 (a) DEFINITIONS.— 

9 (1) COVERED ENTITY.— 


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1 (A) IN GENERAL.—In this section, the 

2 term ‘‘covered entity’’ means the following: 

3 (i) Any entity that is on the list of 

4 Specially Designated Nationals and 

5 Blocked Persons maintained by the Office 

6 of Foreign Assets Control of the Depart7 ment of the Treasury, or any entity under 

8 common ownership or control with such 

9 entity. 

10 (ii) Any entity on the Non-SDN Chi11 nese Military-Industrial Complex Compa12 nies List (commonly known as the ‘‘NS– 

13 CMIC List’’) maintained by the Office of 

14 Foreign Assets Control of the Department 

15 of the Treasury pursuant to Executive 

16 Order 13959 (50 U.S.C. 1701 note; relat17 ing to addressing the threat from securities 

18 investments that finance communist Chi19 nese military companies), or any entity 

20 under common ownership or control with 

21 such entity. 

22 (iii) Any Chinese military company in23 cluded on the list maintained by the De24 partment of Defense under section 

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•S 5244 IS

1 berry National Defense Authorization Act 

2 for Fiscal Year 2021 (Public Law 116– 

3 283; 10 U.S.C. 113 note) as of the date of 

4 the enactment of this Act, or any entity 

5 under common ownership or control with 

6 such company. 

7 (iv) Any Chinese entity with respect 

8 to which sanctions have been imposed 

9 under the under the Global Magnitsky 

10 Human Rights Accountability Act (22 

11 U.S.C. 10101 et seq.), or any entity under 

12 common ownership or control with such 

13 entity. 

14 (v) Any Chinese entity that produces 

15 goods that have been the subject of a with16 hold release order issued pursuant to sec17 tion 307 of the Tariff Act of 1930 (19 

18 U.S.C. 1307) during the 2-year period 

19 ending on the date of the enactment of this 

20 Act, or any entity under common owner21 ship or control of such entity. 

22 (vi) Any Chinese entity included on 

23 the Entity List maintained by the Bureau 

24 of Industry and Security of the Depart25 ment of Commerce and set forth in SupVerDate Sep 11 2014 04:38 Oct 11, 2024 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S5244.IS S5244

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•S 5244 IS

1 plement No. 4 to part 744 of title 15, Code 

2 of Federal Regulations, or any entity 

3 under common ownership or control with 

4 such entity. 

5 (vii) Any Chinese entity on a list 

6 maintained under clause (i), (ii), (iv), or 

7 (v) of section 2(d)(2)(B) of the Act enti8 tled ‘‘An Act to ensure that goods made 

9 with forced labor in the Xinjiang Autono10 mous Region of the People’s Republic of 

11 China do not enter the United States mar12 ket, and for other purposes’’, approved De13 cember 23, 2021 (Public Law 117–78; 22 

14 U.S.C. 6901 note) (commonly referred to 

15 as the ‘‘Uyghur Forced Labor Prevention 

16 Act’’), or any entity under common owner17 ship or control with such entity. 

18 (viii) Any Chinese entity on the Mili19 tary End-User List maintained by the Bu20 reau of Industry and Security and set 

21 forth in Supplement No. 7 to part 744 of 

22 title 15, Code of Federal Regulations, or 

23 any entity under common ownership or 

24 control with such entity. 


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•S 5244 IS

1 (B) CONTROL.—For purposes of subpara2 graph (A), the term ‘‘control’’ has the meaning 

3 given the term in section 230.405 of title 17, 

4 Code of Federal Regulations. 

5 (2) UNITED STATES PERSON.—The term 

6 ‘‘United States person’’ means— 

7 (A) a United States citizen or an alien law8 fully admitted for permanent residence to the 

9 United States; 

10 (B) an entity organized under the laws of 

11 the United States or any jurisdiction within the 

12 United States, including a foreign branch of 

13 such an entity; or 

14 (C) any person in the United States. 

15 (b) PROHIBITION.—Not later than 90 days after the 

16 date of enactment of this Act, the President shall— 

17 (1) compile and maintain a single list of cov18 ered entities; 

19 (2) where possible, include in the list described 

20 in paragraph (1) a unique identification number for 

21 each covered entity, such as a Committee on Uni22 form Securities Identification Procedures number or 

23 a Stock Exchange Daily Official List number; 

24 (3) make the list described in paragraph (1) 

25 available to the public; and 


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1 (4) publicly identify and prohibit the purchase, 

2 sale, or holding by a United States person of a— 

3 (A) publicly traded security issued by a 

4 covered entity; 

5 (B) publicly traded security that is deriva6 tive of a publicly traded security issued by a 

7 covered entity; and 

8 (C) security that provides investment expo9 sure to a publicly traded security issued by a 

10 covered entity. 

11 (c) DIVESTMENT REQUIRED.— 

12 (1) IN GENERAL.—Notwithstanding subsection 

13 (b), a United States person shall divest of all securi14 ties described in subsection (b)— 

15 (A) with respect to a security identified by 

16 the President under subsection (b) before the 

17 end of the 90-day period beginning on the date 

18 of enactment of this Act, not later than 180 

19 days after the date of enactment of this Act; 

20 and 

21 (B) with respect to a security identified by 

22 the President under subsection (b) after the 

23 end of the 90-day period beginning on the date 

24 of enactment of this Act, not later than 180 

25 days after the date of such identification. 


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•S 5244 IS

1 (2) FACILITATING DIVESTMENT TRANS2 ACTIONS.—Subsection (b) shall not apply to a 

3 United States person to the extent the person is fa4 cilitating the divestment of securities described in 

5 paragraph (1). 

6 (d) PENALTIES.— 

7 (1) IN GENERAL.—A United States person that 

8 violates, attempts to violate, conspires to violate, or 

9 causes a violation of this Act shall be subject to the 

10 following penalties: 

11 (A) A civil penalty in an amount not to ex12 ceed the greater of— 

13 (i) $250,000; or 

14 (ii) an amount that is twice the 

15 amount of the transaction that is the basis 

16 of the violation with respect to which the 

17 penalty is imposed. 

18 (B) With respect to a United States person 

19 that willfully violates, willfully attempts to vio20 late, willfully conspires to violate, or aids or 

21 abets in the commission of a violation of this 

22 Act shall be subject to a criminal penalty— 

23 (i) of a fine of not more than 

24 $1,000,000; or 


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1 (ii) if such United States person is an 

2 individual, a fine of not more than 

3 $1,000,000, a term of imprisonment of not 

4 more than 20 years, or both. 

5 (2) AMOUNT OF A TRANSACTION DEFINED.— 

6 For purposes of paragraph (1)(A)(ii), the term 

7 ‘‘amount of a transaction’’ means— 

8 (A) with respect to a purchase that violates 

9 this Act, the purchase price; 

10 (B) with respect to a sale that violates this 

11 Act, the sale price; and 

12 (C) with respect to the holding of a secu13 rity that violates this Act, the fair market value 

14 of the security at the time of the violation. 

Æ 


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